The SF-SAC Single Audit Checklist

Non-federal entities such as states, local governments, Indian tribes and tribal organizations, institutions of higher education and nonprofits use the SF-SAC Single Audit Checklist to compile their reporting package for submission to SF-SAC. This package may include financial statements, schedule of federal awards, summary schedule of prior audit findings as well as costs that remain contested.

Audit Plan
A single audit is an independent examination conducted by a certified public accountant of all financial statements and federal program compliance for non-federal entities. A single audit is mandatory for States, local governments, Indian tribes and tribal organizations, institutions of higher education and non-profit organizations that spend $750,000 or more in federal aid annually; pass-through entities receiving funds from federal agencies also need this audit conducted according to 2 CFR part 200 Uniform Administrative Requirements Cost Principles and Audit Requirements for Federal Awards.

This process enables Federal awarding agencies to monitor the use of over $500 billion annually in federal funds. Audit data uploaded by audit agencies to a central repository known as the Federal Audit Clearinghouse (FAC) are made publicly accessible, making this oftentimes their sole source for single audit information for grant-making agencies or inspectors general.

Auditor’s Report
Federal agencies and pass-through entities use auditor’s reports as the primary method to monitor compliance with Federal requirements. An auditor’s report must be clear and concise, providing an independent evaluation of both an auditee’s control environment and internal controls as well as detailing any costs or charges raised that need further review by an entity audited. Furthermore, such reports should include a schedule detailing any questioned costs which need further attention from audited parties as well as how those concerned responded to them.

The Single Audit Act Amendments of 1996 provided for uniform audit requirements among non-Federal entities that expend Federal awards, such as States, local governments, Indian tribes, institutions of higher education and nonprofits that expend such grants. Under both 2 CFR Part 200: Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance), such entities must undergo independent audits on both their financial statements and Federal awards before filing Form SF-SAC with the Federal Audit Clearinghouse.

The Federal Audit Clearinghouse (FAC) manages and disseminates information collected via the Single Audit Report Form or Single Audit SAC data submission by States, local governments, Indian tribes and institutions of higher education. Furthermore, FAC allows oversight by providing access to these reports or forms from Federal grant-making agencies.

SF-SAC
The SF-SAC is a data collection form used to collect and disseminate audit information related to federal awards. This allows inspectors general and grant administrators to monitor how over $500 billion in federal funding is utilized each year, as well as simplify audit and compliance reporting by non-federal entities.

Non-Federal entities (States, local governments, Indian tribes and tribal organizations, institutions of higher education and nonprofit organizations) that expend $500 million or more within any fiscal period are mandated to conduct either a single audit or program-specific audit for every federal award received and report these audits via the Single Fund Single Audit Clearinghouse (SF-SAC) reporting package to the Federal Audit Clearinghouse.

SF-SAC is an automated system designed to collect and disseminate audit information for State, local government and Indian tribal governments that use federal funds, as well as entities receiving such funds. The data it compiles comes from OMB Circular A-133 as well as 2 CFR Part 200 which outlines Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards.

SEFA
An entity receiving federal funds must report these amounts in its SEFA in accordance with Uniform Guidance requirements, and should include all programs for which the entity received awards as well as pass-through amounts to subrecipients and total loan advances on this report.

Setting up the SEFA accurately is critical, as it determines whether a Single Audit is applicable and can yield substantial savings for non-federal entities. A properly prepared SEFA will reduce reporting information twice while giving the auditor a more complete picture of all Federal awards received by an entity. A comprehensive SEFA preparation process may also help non-federal entities cut compliance costs by decreasing reported use or commitment of federal funds that have yet to be spent.